In 2025 pensions will increase, but by how much? It depends on the level of inflation which is fundamental to apply the equalization mechanism which annually adjusts pensions to the cost of living. This is how much the social security checks that will be paid next year will grow.
How equalization works
Equalization is a fundamental mechanism that guarantees the‘adjustment of pension amount to inflation preserving the purchasing power of pensioners. This process involves the annual revaluation of pensions based on the increase in the cost of living, according to data provided by Istat. The adjustment is essential to maintain a certain economic equity and ensure that pensions continue to meet the needs of those who receive them, despite inflation.
The revaluation
As anticipated, in 2025, the minimum pension will be revalued based on inflation with an estimated percentage of 1.6%. This will lead to an increase of approximately 9.57 euros, bringing the minimum pension to 608.18 euros per month, approximately 7,906 euros per year. We recall that the high level of inflation in 2023 and 2024 had led to revaluations more significant than those of next year where the estimate of Istat and the European Commission on the indicator in question is reduced. However, the full revaluation will only affect pensions up to four times the minimum, making the increases rather limited.
The calculations
Considering an estimated revaluation of 1.6%, the minimum pensions could increase by about 9.5 euros, reaching 608.18 euros. Those receiving a pension of one thousand euros could receive 16 euros more, while for a check of 1,500 euros the increase could be 24 euros. Pensions higher than four times the minimum will see proportionally smaller increases. The final details will be known only at the end of the year and will also depend on the decisions of the executive that is moving to support pensioners. The law provides that the equalization percentages vary depending on the amount of the pension payment.
Here are the “standard” calculations: 100% revaluation for pensions up to 4 times the minimum treatment; 90% revaluation between 4 and 5 times the minimum treatment; 75% revaluation above 5 times the minimum treatment.